The economics of forestry in the Netherlands (2)

The economics of forestry in the Netherlands

Being a private forest owner in the Netherlands is not a profitable occupation. In general the forest properties in the Netherlands are small and are therefore uneconomical to manage. Only 150 of the 2480 registered owners has properties larger than 200 ha. On the top of that, wages are high, rates and taxies (for example for water management) are also high and production is relatively low. Government subsidies are therefore extremely important but fall short of making forestry profitable.

Forests and environment

Forests serve an important but tragic role in signaling the state of environmental pollution. Since 1983 the Dutch government has conducted a forest health survey annually, to chart health of Dutch forests at the national level, per tree species. The survey also aims to describe the changes in the state of health compared with previous years and finally, if possible, it pinpoints the probable causes of the current state of forest health. The survey is conducted according to directives formulated by the European Economic Commission.

Forest policy

All forests in the Netherlands are protected under the Dutch Forestry Act, which ensures that where there is forest there will always be forest. A forest owner who intends to fell a stand is obliged to report his intention to a representative of the Minister of Agriculture, Nature Management and Fisheries.

If, after a period of 30 days, he has heard nothing from this representative, he may proceed. His next obligation is to ensure that within 3 years there is a new stand of trees on the same spot.

Afforestation, reforestation and other measures in the forests increasing the cost of forest management are subsidized. One of the general conditions for receiving a subsidy is that the owner opens his forest to the public free of charge.

Threats for forests

Present environmental problems are a major threat for the Netherlands forests. The health of trees is damaged by desiccation and acidification. Air pollution from the agriculture, electricity plants, traffic and industry has a negative result on the forest health; the effect of air pollution on the forest ecosystem appears as follow:

• a disturbed nutrient balance in the trees (leaves and needles) and in the topsoil;

• increased leaching of important nutrients;

• decline and destruction of sensitive plant species and fungi;

• increased nitrate leaching to the ground water and by this and by this threatening the drinking water supply;

• increased weakness for drought, frost, fungal diseases and insect damage.